Update on KMT Legal Proceedings

FIRST QUANTUM MINERALS PROVIDES UPDATE ON KMT LEGAL PROCEEDINGS IN THE DEMOCRATIC REPUBLIC OF CONGO

(All figures expressed in US dollars, unless otherwise noted)

First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM", LSE Symbol "FQM") wishes to provide an update on legal developments in the Democratic Republic of Congo ("RDC") involving the Kolwezi tailings project (the "Kolwezi Project").

On August 2, 2010 Kingamyambo Musonoi Tailings SARL ("KMT"), the Congolese company which was developing the Kolwezi Project until the site was sealed by the RDC authorities, received notice of a judgement of the Appeal Court of Kinshasa ("Appeal Court") rendered on July 27, 2010. The judgement was requested by La Générale des Carrières et des Mines ("Gecamines"), the Mining Registry ("CAMI") and the RDC, and follows a previous judgement of the Appeal Court of March 10, 2010 pursuant to which each of Congo Mineral Developments Ltd. ("CMD") and KMT were ordered to pay damages totalling more than US$12 billion to Gécamines, CAMI and the RDC.

This dispute is also currently the subject of international arbitration before the International Chamber of Commerce ("ICC") involving the Company, the IFC (International Finance Corporation) and the Industrial Development Corporation of South Africa ("IDC") as Claimants and the RDC and Gecamines as Defendants.

According to the notice received by KMT on August 2, 2010 the Appeal Court decided that KMT is in the process of being liquidated and appointed a Congolese liquidator in order, notably, to (translation):

"value the needs and debts of the company K.M.T. being liquidated; and carry out liquidation transactions including: .... to pay the debts; .... and to transform the assets into cash, to transfer them to third parties either by selling them or off-setting them against the company's debts."

The Company believes that this judgement is yet a further step taken by the RDC and Gecamines to transfer the assets of the Kolwezi Project to a third party notwithstanding and without regard to the on-going international arbitration before the ICC. A Tribunal for the international arbitration has been constituted.

The Company notes that summons for these proceedings were served on KMT with five days notice and neither CMD nor KMT were given the opportunity to submit any written submission. KMT's lawyer appeared before the Appeal Court, but withdrew after the Appeal Court refused to grant any further time period for the parties to exchange written submission in accordance with Congolese rules of civil procedure. CMD, KMT's majority shareholder, was never notified of these proceedings or of the judgement of the Appeal Court and was not represented in the proceedings.

The Company is considering all available means of recourse and is in the process of filing for immediate relief from the ICC Tribunal by way of interim measures protection pending the outcome of the international arbitration. While the Company regrets the continuation of legal attacks brought by the RDC and Gecamines against the Company, the Company remains open to seeking a negotiated solution to the Kolwezi Project dispute.

The Company will provide further updates as warranted.

On Behalf of the Board of Directors 12g3-2b-82-4461

of First Quantum Minerals Ltd. Listed in Standard and Poor's

G. Clive Newall

President

For further information visit our web site at www.first-quantum.com

North American contact: Sharon Loung 8th Floor, 543 Granville Street, Vancouver, British Columbia, Canada V6C 1X8 Tel: (647) 346-3934 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: [email protected] United Kingdom contact: Clive Newall, President 1st Floor, Mill House, Mill Bay Lane, Horsham, West Sussex RH12 1TQ United Kingdom Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: [email protected] Or Simon Hockridge

Hogarth Partnership Ltd. Tel: +44 (0) 20 7357 9477

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